Gogo Inc. [NASDAQ: GOGO] closed the trading session at $11.01 on 10/09/20. The day’s price range saw the stock hit a low of $10.07, while the highest price level was $11.05. The company report on September 23, 2020 that Gogo Adopts Shareholder Rights Plan to Protect Valuable Tax Assets.
Gogo Inc. (NASDAQ: GOGO) (“Gogo”) today announced that its Board of Directors has adopted a Section 382 Rights Plan (the “Plan”) to preserve and protect Gogo’s ability to utilize its large net operating loss carryforwards (“NOLs”) and other tax assets.
As of December 31, 2019, Gogo had approximately $580 million of federal tax NOLs, $430 million of state tax NOLs and $196 million in federal interest expense carryforwards which could be used in certain circumstances to reduce its future tax liability. The purpose of the Plan is to protect Gogo’s ability to use these tax assets, which would be substantially limited if Gogo experienced an “ownership change” as defined under Section 382 of the Internal Revenue Code. In general, an ownership change would occur if one or more of Gogo’s shareholders who are deemed to be owners of 5 percent or more of its shares under Section 382 collectively increase their aggregate ownership of Gogo’s shares by 50 percentage points or more (measured over a rolling three-year period).
The stocks have a year to date performance of 72.03 percent and weekly performance of 9.99 percent. The stock has been moved at 453.27 percent over the last six months. The stock has performed 13.80 percent around the most recent 30 days and changed 244.06 percent over the most recent 3-months.
If compared to the average trading volume of 6.31M shares, GOGO reached to a volume of 3141036 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Gogo Inc. [GOGO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GOGO shares is $10.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GOGO stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Cowen have made an estimate for Gogo Inc. shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on September 09, 2020. While these analysts kept the previous recommendation, ROTH Capital dropped their target price from $8 to $10. The new note on the price target was released on September 01, 2020, representing the official price target for Gogo Inc. stock. Previously, the target price had yet another raise to $10, while ROTH Capital analysts kept a Buy rating on GOGO stock.
The Average True Range (ATR) for Gogo Inc. is set at 1.03, with the Price to Sales ratio for GOGO stock in the period of the last 12 months amounting to 1.23.
GOGO stock trade performance evaluation
Gogo Inc. [GOGO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 9.99. With this latest performance, GOGO shares gained by 13.80% in over the last four-week period, additionally plugging by 453.27% over the last 6 months – not to mention a rise of 103.70% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GOGO stock in for the last two-week period is set at 69.52, with the RSI for the last a single of trading hit 71.40, and the three-weeks RSI is set at 68.47 for Gogo Inc. [GOGO]. The present Moving Average for the last 50 days of trading for this stock 7.04, while it was recorded at 10.33 for the last single week of trading, and 4.23 for the last 200 days.
Gogo Inc. [GOGO]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Gogo Inc. [GOGO] shares currently have an operating margin of +4.39 and a Gross Margin at +29.58. Gogo Inc.’s Net Margin is presently recorded at -17.47.
Return on Total Capital for GOGO is now 4.74, given the latest momentum, and Return on Invested Capital for the company is -18.99. Additionally, GOGO Total Debt to Total Capital is recorded at 150.24, with Total Debt to Total Assets ending up at 98.21.
Reflecting on the efficiency of the workforce at the company, Gogo Inc. [GOGO] managed to generate an average of -$130,945 per employee. Receivables Turnover for the company is 6.47 with a Total Asset Turnover recorded at a value of 0.67.Gogo Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.30.
Earnings per share (EPS) analysis for Gogo Inc. [GOGO] stock
With the latest financial reports released by the company, Gogo Inc. posted -0.28/share EPS, while the average EPS was predicted by analysts to be reported at -0.56/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 50.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GOGO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Gogo Inc. go to 10.00%.
Gogo Inc. [GOGO]: Insider Ownership positions
There are presently around $457 million, or 49.00% of GOGO stock, in the hands of institutional investors. The top three institutional holders of GOGO stocks are: MUDRICK CAPITAL MANAGEMENT, L.P. with ownership of 8,726,814, which is approximately 0% of the company’s market cap and around 0.70% of the total institutional ownership; VANGUARD GROUP INC, holding 4,426,999 shares of the stock with an approximate value of $48.74 million in GOGO stocks shares; and BLACKROCK INC., currently with $41.73 million in GOGO stock with ownership of nearly 6.812% of the company’s market capitalization.
Positions in Gogo Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 50 institutional holders increased their position in Gogo Inc. [NASDAQ:GOGO] by around 6,399,532 shares. Additionally, 77 investors decreased positions by around 11,037,615 shares, while 19 investors held positions by with 24,064,036 shares. The mentioned changes placed institutional holdings at 41,501,183 shares, according to the latest SEC report filing. GOGO stock had 24 new institutional investments in for a total of 2,107,324 shares, while 37 institutional investors sold positions of 3,037,901 shares during the same period.